Breaking Down Brexit: Views From Across Europe

British Prime Minister Theresa May this week returned to Parliament after her devastating defeat with a compromise offer to involve Parliament more closely in the next steps of Brexit, but only if her Withdrawal Bill is passed on 29 March.

May also plans to return to the EU and seek concessions on the controversial Northern Ireland backstop, however it remains far from certain if any movement will be possible.

For companies, May’s refusal to back down hangs over the business landscape and further political turmoil over the coming days will do little to ease the uncertainty.

Sterling has held steady against the Dollar at $1.29 and actually rose 0.9% against the Euro to €1.13 over the last week as many traders see the current political impasse as increasing the chances that Britain could end up staying in Europe a little longer.

What’s at stake, where do we go from here, and how is the business world reacting to this new reality? Our breaking news and coverage from Forbes Contributors across Europe continue below.

Theresa May Visits A West Midlands BusinessGetty Images

May fights on

May’s deal is not dead yet, argues Frances Coppola. The Prime Minister survived a vote of no confidence but now must balance two opposing factions in Parliament.

On the one hand she must keep the option of “no deal” on the table in order to keep her Brexiteer MPs and the DUP on-side.

On the other, she must appear ready to compromise in order to keep the Remainer faction of her party in-line to avoid her government falling at the next no confidence vote.

This is also why May refuses to seek an extension to Article 50 at this very late stage, her hope is that the pressure of the 29 March deadline will eventually force MPs to side with her deal.

A real retail crisis

British retail suffered its worst Christmas in a decade as looming consumer uncertainty leading to a sharp decline in spending, explains Andrew Busby.

Famous toy store Hamley's blamed Brexit for a staggering 500% drop in profits over Christmas, while Bonmarché, Marks & Spencer, John Lewis and others have started 2019 with profit warnings and store closures.

“The list goes on, and all the while, instead of becoming clearer as we approach the March deadline, the Brexit fog rolls in unabated, ever thicker and thicker.”

BRITAIN-POLITICS-EU-BREXITAFP/Getty Images

Europe reacts

"Brexit is dead.” That’s the verdict of one FX trader at Sweden’s largest bank, who agrees with many across Europe that the current stalemate will likely lead to an extension of Article 50, and possibly the cancelling of Brexit entirely.

As the CEO of one investment bank said, “Uncertainty is always bad for markets and certainty, however awful, is always better.”

Michael Gove, Secretary of State for Environment AFP/Getty Images

Preparing for no deal

With no agreement reached and the 29 March deadline when the U.K. will leave Europe edging closer by the day, the possibility of a “no deal” Brexit is fast growing.

While the British government has spent the past few months reaching out to businesses urging them to prepare for the worst case scenario, investors have received no advice.

Oliver Williams spoke to six financial and wealth planning experts and heard their advice for how investors can best weather a “no deal” Brexit storm.

Jacob Rees Mogg, MP Getty Images

May's disastrous deal

Even though most of her critics and supporters knew Theresa May’s withdrawal agreement would fall—although few expected such a spectacular defeat—the Prime Minister plowed on with her 585-page treaty regardless.

Assuming May wins Wednesday’s vote of no confidence, she looks set to continue pursuing her agenda to pass the deal, possibly with some cross-party compromises.